third party export sale

[Former Member]

Hello,

Can anyone elaborate on the definition of third party export sale.......

It is where an exporter exports on behalf of another third party exporter........here who is the seller and who is the vendor...???how to go about with this scenario....??....kindly provide a solution...

[Former Member]

thanks a lot lakshmipathi...

[Former Member]

Thanks lakshmipathi.... it was of real help....

Could you tell me who will invoice whom between the manufacturer, intermediary and customer and who would be considered as the third party among the manufacturer and the intermediary..............???

Kindly help....

[Lakshmipathi]

Manufacturer will invoice intermediary without tax and duty and in turn, intermediary will invoice the overseas customers.

For this the intermediary will submit the proof of exports to manufacturer once the exports is made.

thanks

G. Lakshmipathi

[Former Member]

thanks prasanth & laksmipati....for ur prompt reply......

Actually my concept is not clear about this scenario...... as far as i know third party sale involves a seller ,third party supplier and an end customer....suppose in a scenario where " A exports goods on behalf of third party B" & B has contract with the end customer(foreign)......who is the third party & who is the seller.........among A & B.....???....what is the meaning of third party exporter ....???...is the process in third party sale be followed in third party exports.............??

kindly help....

[Lakshmipathi]

In simple terminology, third party sales means, the manufacturer is not making sale directly to end customer but through some intermediary.

In third party exports, the manufacturer sell the goods to an intermediary in the same country and that intermediary exports the goods to their end customer.

thanks

G. Lakshmipathi

[Former Member]

Hi

Third Party Exports

In terms of para 2.34 read with para 9.62 of the Foreign Trade Policy, 2004-09, u201CThird Party Exportsu201D have been defined to mean exports made by an exporter or manufacturer on behalf of another exporter(s). In such cases, export documents such as shipping bills etc. shall indicate the name of both the manufacturing exporter/ manufacturer and third party exporter(s). The BRC, GR declaration, export order and the invoice should be in the name of the third party exporter. The definition of u201CThird Party Exportsu201D in Circular No.120/95-Cus. dated 23.11.1995 accordingly stands amended to fall in line with the definition of third party exports given under the Foreign Trade Policy. The other conditions of the Circular will remain unchanged.

Just search in the google

regards

Prashanth

[Lakshmipathi]

As per Customs Circular No. 30 /2005-Cus.12th July, 2005, below is treated as Third Party Exports.

Third-party exports means exports made by an exporter or manufacturer on behalf of another exporter(s). In such cases, export documents such as shipping bills shall indicate the name of both the manufacturing exporter / manufacturer and third-party exporter(s). The BRC, GR declaration, export order and the invoice should be in the name of the third-party exporter

thanks

G. Lakshmipathi